The Gap Inc Essays -- Business and Management Studies

The orifice Inc1. Case SummaryThe whirl, Inc is a chain of retail ancestrys that move casual habit,shoes, and accessories for men, woman and children. Headquarter in SanFrancisco the stores operate under a phase of names including spreading,Banana Republic, Old Navy Clothing Company, scatter Kids, and nestling Gap.All merchandise sold by chain is cliquish label.The Gap was founded in 1969 when Donald Fisher and his wife, Dorisopened a sm exclusively clothing store near San Francisco State University. By1971 they were operating six Gap stores. In 1995, Fisher retired asCEO and Drexler, now age 50, took over the title.The Gap contracted with over 500 manufacturers around the world thatmade the companies private label apparel according to Gapspecifications. Gap, Inc purchased about 30 % of its cloth frommanufacturer located in United State and 70% from trafficker located in 46foreign countries. No single supplier provided more than 5 % of itsmerchandise.In the wake of conc ern over thirdly world functional conditions, the Gap as well adopted a notice of sourcing dominion and guideline. This providestandard that the vendors had to meet including engage in no form ofdiscrimination, used no forced or prison labor, employee no childrenunder 14 years of age, provide a safe working environment foremployees, pay the legal minimum weight of the local anaesthetic painsstandard- whichever is greater. The Gaps supplier should also meetall relevant local environmental regulation, and comply with the Gapown more slopped environmental standards, neither threaten norpenalize employees for their efforts to organize or mintcollectively and uphold local custom laws. To ensure compliance withits standards, the Gap sends a Gap Field Representative to conductin-depth discourse with a prospective supplier prior to the initiationof a business relationship. The Gap supplier in Salvador, run by mandarin orange International,Taiwanese-owned Company that operated app arel assembly plants aroundthe world. The Gap had begun contracting with Mandarin plants in ElSalvador in 1992. A worker there was paid approximately 12 cents forassembling a Gap three-quarter sleeves t-shirt or turtle neck, whichretailed at about $20 in the United States. Wages at the Mandarinplants averaged 56 cents an hour-a level that was claimed to provide totally 80% of the amount neede... ...arin employee who pose Gap product. - The Gap should make sure the entire supplier fulfills its sourcing principle and guidelines. The supplier which doesnt implemented the entire Gap standard and the local government standard, the Gap should avoid doing business with them.- Mandarin International do unethical business by not allowing their employee to make union (fired all the union members) and all the unethical behavior toward the employee.Recommendation- The Gap should tell apart their supplier carefully and maximize the Gap field representative by put an eyes and do the re gular inspection not only when they start the business but always monitoring the working and tender condition of the supplier to comply with the Gap code of conduct and also the local government laws.- The Gap representative officer should do the interview without being known by the Mandarin International, so the employee would be freely to speak about what really happened in the factory.- The Gap should give more effort to increase the quality of live their supplier employee which usually in the third world by giving education or other benefit.